NEW YORK--(BUSINESS WIRE)--Fitch Ratings has affirmed all classes of Banc of America ReREMIC Trust, resecuritization pass-through certificates, series 2009-1 (BCRR TRUST 2009-1). A complete list of rating actions follows at the end of this release.
KEY RATING DRIVERS
This transaction is a resecuritization of the ownership interest in two commercial mortgage-backed certificates rated by Fitch: GS Mortgage Securities Trust 2007-GG10, class A-4, rated 'Asf'; Outlook Negative, and LB-UBS Commercial Mortgage Trust, series 2007-C6, class A-4, rated 'AAAsf'; Outlook Stable.
As a resecuritization, the class I certificates receive their cash-flows from the underlying class GS Mortgage Securities Trust 2007-GG10 A-4 certificate and the rating from the underlying security. This underlying class was affirmed at 'Asf'; Outlook Negative on Jan. 6, 2016. The affirmation of class I-A1 at 'AAAsf' was the result of credit enhancement for I-A1 certificates being approximately 55%. Credit enhancement is provided by the structural support of the underlying transaction as well as the subordinate certificates in the re-securitization. Class I-A1 currently receives principal payments.
As a resecuritization, the class II certificates will receive their cash-flows from the underlying class LB-UBS Commercial Mortgage Trust, series 2007-C6 (LBUBS 2007-C6), class A-4 certificate and the rating from the underlying security. This underlying class was affirmed by Fitch at 'AAAsf'; Outlook Stable on May 12, 2016. Class II-A1 currently receives principal payments.
The underlying security for the class I certificates has a Negative Rating Outlook due to the high leverage of the pool overall as well as the many large loans that are experiencing performance issues. The class I-A2 remains vulnerable to downgrade should collateral performance continue to deteriorate. The class I-A1 certificates are likely to remain stable due to the approximately 55% credit support provided by the underlying transaction. The security underlying the class II certificates maintains a Stable Rating Outlook and no near-term rating actions are expected.
Fitch has affirmed the following classes:
--$48.3 million class I-A1 at 'AAA'; Outlook Stable;
--$23.2 million class I-A2 at 'A'; Outlook Negative;
--$114.9 million class II-A1 at 'AAA'; Outlook Stable;
--$67.3 million class II-A2 at 'AAA'; Outlook Stable.
DUE DILIGENCE USAGE
No third party due diligence was provided or reviewed in relation to this rating action.
Additional information is available at www.fitchratings.com.
Counterparty Criteria for Structured Finance and Covered Bonds (pub. 14
Global Structured Finance Rating Criteria (pub. 06 Jul 2015)
U.S. and Canadian Fixed-Rate Multiborrower CMBS Surveillance and U.S.
Re-REMIC Criteria (pub. 13 Nov 2015)
Dodd-Frank Rating Information Disclosure Form